EUR/GBP Seems Set to Extend Last Week Gains
The EUR/GBP
pair surged past 0.7800 handle on Friday and adding some more weight to
0.7855 on Monday has retraced a bit to dip below 0.7850 level.
The
pair has been witnessing corrective move from April highs and now seems
to found strong support near 0.7735-30 area. Also, any attempts of
recovery were finding it difficult to break through 0.7800 mark, which
has now been decisively conquered. Hence, from current levels the pair
seems poised to extend its near-term recovery.
Technical levels to watch
A
follow-up buying interest should continue to boost the pair immediately
towards 0.7875 horizontal resistance, which if cleared opens room for a
test of 0.7920-25 horizontal resistance.
On the downside,
0.7832-30 zone now seems to provide immediate support. Any subsequent
weakness below this immediate support is likely to get extended,
dragging the pair back towards an important resistance handle
break-point now turned immediate support near 0.7800 region.
